GSK Raises Full-Year Profit Guidance on Strong Q1 Vaccine Sales
01 May 2024
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Pictured: GSK's headquarters building in West London/iStock/Tati Campelo
GSK announced in its first-quarter 2024 results Wednesday that it will raise the company’s full-year guidance on the heels of another positive sales quarter thanks to strong vaccine sales.
The British pharma raked in £7.4 billion (nearly $9.2 billion) in total sales, marking a 10% increase from the first quarter of last year. GSK’s vaccine sector brought in £2.2 billion ($2.7 billion) in total sales in Q1, a 22% rise from the same period in 2023.
GSK is now expecting 2024’s sales to grow at the upper end of its 5% to 7% forecast range. Its core operating profit growth for the year is expected to be in the 9% to 11%, up from 7% to 10%, and annual adjusted earnings per share of 8% to 10% which was previously set at 6% to 9%.
Sales in Q1 of the company’s shingles vaccine Shingrix were £945 million ($1.1 billion), an 18% increase from the same quarter last year. GSK said that sales of Shingrix increased due to strong demand following public funding expansion in European and international markets. The vaccine also had new immunization programs in Australia, Europe, and the U.K. Markets outside the U.S. represented over 50% of global sales, as the vaccine is now available in 39 countries.
Respiratory syncytial virus (RSV) vaccine Arexvy generated £182 million ($227.3 million) in sales, with £154 million ($192.3 million) coming from the U.S. while noting a demand decrease that was in line with “anticipated seasonality patterns.” The vaccine was also on the uptake in other markets, such as Canada, Saudi Arabia, and Brazil.
Since its launch last year, Arexvy has dominated the U.S. RSV vaccine market and outperforming sales of Pfizer’s shot Abrysvo.
Arexvy was accepted for priority review by the FDA in February 2024 to extend its indication to adults 50 to59 years of age at increased risk for RSV, a potential market that includes approximately 15 million Americans. A decision by the agency is expected in early June.
GSK’s meningitis vaccines, Menveo and Bexsero, brought in £299 million ($373 million) in Q1 due to a higher international demand for Menveo while Bexsero saw increased demand in Australia and launched in Vietnam.
The specialty medicines sector for GSK grew 17%, pulling in £2.5 billion ($3.1 billion) in sales. The company’s HIV medicines were also a primary earner, posting £1.6 billion ($1.9 billion) in profit, a 14% bump from Q1 last year.
“Together with other R&D achievements, mean we have strengthened prospects for growth in all of our key therapeutic areas this quarter: infectious diseases, HIV, respiratory/immunology and oncology,” GSK CEO Emma Walmsley said in a statement. “We expect this strong momentum to continue, and look forward to delivering another year of meaningful growth in sales and earnings in 2024.”
The pharma is also involved in several legal battles, including litigation related to the heartburn medication Zantac and its alleged cancer link. According to GSK, it encountered “significant legal charges” in Q1 related to its defense in the Zantac litigation. In February 2024, the company reached a confidential settlement in one case but multiple trial dates have been set in other courts. GSK said that it cannot “meaningfully assess” what liability it may have.
GSK is also suing Pfizer and BioNTech, alleging that the two companies have infringed on patents related to the mRNA technology in their COVID-19 vaccine Comirnaty.
Tyler Patchen is a staff writer at BioSpace. You can reach him at tyler.patchen@biospace.com. Follow him on LinkedIn.
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